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Today’s data revealed that US Pending Home Sales dropped 1.3% in April. According to analysts from Wells Fargo, severe inventory shortages continue to restrain home buying.

Key Quotes:

“Contract signings for existing home sales fell 1.3 percent in April and are now down 2.1 percent annualized compared to last year. March pending sales were also revised up slightly to 0.6 percent.

“The monthly series remains volatile, with this past month’s decline following two months of gains. Demand does not appear to be the problem, however. Sales continue to be held back by a severe lack of inventory, particularly in the West.

“While low inventories are restraining sales across much of the country, the problem is most acute in the West, where pending sales have now declined every month going back to October 2017. “